Succession Certificate for Shares: When You Still Need One, and How the Court Process Works

For years, registrars asked almost every family without a nominee for a succession certificate. That is no longer true. Under SEBI's July 2026 framework, most holdings can be transmitted without one. It still matters in a smaller set of cases, and those tend to be the higher-value ones.

When you still need one

• The holding is above SEBI's limits: more than ₹10 lakh per company in physical form, or ₹30 lakh per beneficial owner in demat. Even then a succession certificate is only one option: a will or a legal heirship certificate, each with an indemnity bond, is also accepted.
• There is no will, and no legal heirship certificate is available: in your state for this purpose, or the family can't obtain one
• A registrar, bank or other institution insists on it: for a particular asset, even where SEBI's rules don't require it
• The heirs want a court's word on it: , for instance where the estate is large and the family is spread out

Check first whether you are within the limits: nominee, no nominee and the value thresholds.

What it does in an unclaimed share recovery

A succession certificate is not a formality you produce at the end. Where it applies, it changes what the rest of the file has to contain:

• It replaces the other heirs’ NOC.: Under SEBI’s July 2026 framework, a claimant who produces a succession certificate, probate, letter of administration or court decree does not need an affidavit-cum-NOC from the non-claimant heirs — and in the simplified category, not the indemnity bond either. For a family whose members are scattered or not speaking, that is often the whole reason to go to court.
• It covers debts and securities, which includes unclaimed dividends.: The certificate authorises the holder to collect what was owed to the deceased, so unpaid dividends sitting with a company fall within it alongside the shares themselves.
• It supports an IEPF claim.: Where the shares have already gone to the IEPF and the shareholder has died, the company verifying Form IEPF-5 has to satisfy itself that the claimant is entitled. A succession certificate answers that question in a way a registrar or nodal officer rarely argues with.
• It protects the company that pays you.: That is its statutory purpose, and it is why institutions ask for it on higher-value holdings: it discharges them if another claimant appears later.

The trap is scope. It covers only the securities named in it, so a certificate obtained for two companies will not help with the third one you find next year — including holdings sitting in the IEPF, which should be listed in the petition like any other.

What a succession certificate is

It is issued by a civil court under Part X of the Indian Succession Act, 1925. It authorises the holder to collect the debts and securities of a person who has died, and it protects companies and banks that pay or transfer to the holder. It doesn't cover land or buildings.

Which court

The petition goes to the District Judge with jurisdiction where the deceased ordinarily lived at the time of death. If they had no fixed home, it goes to the court where any of the property is located.

What the petition must state

Section 372 of the Act sets out the contents. In outline:

• The time of death
• Where the deceased ordinarily lived, or had property, at that time
• The family and other near relatives, with their addresses
• The petitioner's right to the certificate
• That nothing prevents the certificate being granted
• The debts and securities for which the certificate is sought

List every holding

The certificate covers only the securities named in it. If you petition for the Reliance shares and later find ITC and HDFC Bank folios, you'll be back in court asking to extend it. Before a lawyer drafts the petition, trace every holding: demat statements, old dividend warrants, annual reports posted to the house, and an IEPF search on the shareholder's name.

Time and cost

• Notice: the court issues notice and publishes it so anyone with an objection can come forward. Hearings follow.
• Duration: an uncontested petition often takes around six months. Some courts are much quicker, some slower, and an objection changes everything.
• Court fee: charged as a percentage of the value of the debts and securities, at rates that vary by state. For a large holding this is the biggest single cost, and the family pays it at actuals.
• Security: the court may ask the petitioner for a bond, with or without surety, depending on the facts

Once you have it

Send the registrar a certified copy with the Annexure-3 transmission request form and the Client Master List of the demat account to be credited. A succession certificate does more than unlock the claim: where you produce one, SEBI's framework drops the affidavit-cum-NOC from the other heirs, and in the simplified category the indemnity bond too. Since April 2026 the shares go straight to your demat account.

When a lawyer is essential

Petitions are filed by advocates, and this is a court proceeding, not a form. If the family is divided, a minor is among the heirs, or the deceased's residence is unclear, get advice on your specific facts before filing. This page explains the process in general; it isn't legal advice.